SoundHound AI (NASDAQ:SOUN) Shares Down 14.9% - Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price fell 14.9% during mid-day trading on Wednesday . The stock traded as low as $6.15 and last traded at $6.43. 33,161,445 shares were traded during trading, a decline of 3% from the average session volume of 34,224,246 shares. The stock had previously closed at $7.56.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on SOUN. Wedbush reissued an "outperform" rating and set a $9.00 price target on shares of SoundHound AI in a report on Thursday, September 26th. Northland Securities upped their price target on SoundHound AI from $5.50 to $6.00 and gave the stock a "market perform" rating in a research note on Friday, August 9th. Cantor Fitzgerald upgraded shares of SoundHound AI from a "neutral" rating to an "overweight" rating and lifted their price objective for the company from $5.00 to $7.00 in a research report on Friday, August 9th. DA Davidson restated a "buy" rating and set a $9.50 price objective on shares of SoundHound AI in a research report on Monday, September 30th. Finally, LADENBURG THALM/SH SH reaffirmed a "neutral" rating and issued a $7.00 target price on shares of SoundHound AI in a report on Wednesday. Three research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. Based on data from MarketBeat, SoundHound AI has an average rating of "Moderate Buy" and a consensus target price of $7.50.

SoundHound AI Price Performance

The stock's fifty day simple moving average is $5.18 and its 200-day simple moving average is $4.92.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its quarterly earnings data on Tuesday, November 12th. The company reported ($0.06) EPS for the quarter, beating analysts' consensus estimates of ($0.08) by $0.02. SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 73.21%. The firm had revenue of $25.10 million for the quarter, compared to analysts' expectations of $23.02 million. The firm's revenue was up 88.7% on a year-over-year basis. During the same period in the prior year, the company earned ($0.09) EPS. As a group, equities research analysts anticipate that SoundHound AI, Inc. will post -0.36 EPS for the current year.

Insiders Place Their Bets

In other news, CEO Keyvan Mohajer sold 63,544 shares of the company's stock in a transaction on Monday, September 23rd. The stock was sold at an average price of $4.92, for a total value of $312,636.48. Following the sale, the chief executive officer now directly owns 2,299,148 shares in the company, valued at $11,311,808.16. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In related news, CEO Keyvan Mohajer sold 63,544 shares of the firm's stock in a transaction that occurred on Monday, September 23rd. The shares were sold at an average price of $4.92, for a total transaction of $312,636.48. Following the sale, the chief executive officer now owns 2,299,148 shares in the company, valued at approximately $11,311,808.16. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Nitesh Sharan sold 39,728 shares of SoundHound AI stock in a transaction that occurred on Friday, September 20th. The stock was sold at an average price of $4.88, for a total transaction of $193,872.64. Following the completion of the sale, the chief financial officer now directly owns 1,560,411 shares of the company's stock, valued at $7,614,805.68. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 327,275 shares of company stock valued at $1,606,644. Corporate insiders own 12.28% of the company's stock.

Institutional Trading of SoundHound AI

A number of hedge funds have recently added to or reduced their stakes in SOUN. Kings Path Partners LLC acquired a new position in shares of SoundHound AI during the 2nd quarter valued at about $28,000. International Assets Investment Management LLC acquired a new position in SoundHound AI during the second quarter worth approximately $31,000. NBC Securities Inc. raised its stake in SoundHound AI by 97.8% during the third quarter. NBC Securities Inc. now owns 7,720 shares of the company's stock worth $35,000 after purchasing an additional 3,818 shares during the period. Amalgamated Bank boosted its holdings in shares of SoundHound AI by 108.0% in the 2nd quarter. Amalgamated Bank now owns 9,819 shares of the company's stock valued at $39,000 after purchasing an additional 5,099 shares during the last quarter. Finally, Signaturefd LLC grew its stake in shares of SoundHound AI by 27.3% during the 2nd quarter. Signaturefd LLC now owns 10,255 shares of the company's stock valued at $41,000 after buying an additional 2,200 shares during the period. 19.28% of the stock is owned by institutional investors and hedge funds.

About SoundHound AI

SoundHound AI, Inc develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI that integrates with knowledge domains, pulling real-time data like weather, sports, stocks, flight status, and restaurants; and SoundHound Smart Answering is built to offer customer establishments custom AI-powered voice assistant.

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